Switching Companies

Auto insurance can be quite a costly affair, especially if you have a brand-new vehicle. Besides, you don’t actually wish to use your car insurance. That said, having the right coverage is crucial to make sure that you are covered in the worst-case scenario. In other words, auto insurance essential, but can you save some money on it? Well, as it turns out, you can!

If you are careful, vigilant and use some trusted tips, you can save hundreds on car insurance without having to sacrifice on the coverage. Here are seven most efficient tips to save money on auto insurance.

1. Shop around a bit

Many people stay with the same auto insurer year after year. Although you may have a feeling of familiarity with a company, switching over to some other provider can be quite lucrative. Make sure that you compare premiums from the most popular companies before renewing your policy with your current provider. Make sure that you are aware of any changes to your plan after renewal and get quotes from competing providers to see if you can save some money.

2. Pick a reliable insurer

Picking the top insurers can mean paying a bit more compared to a local insurer. But when it comes to filing claims, you will have a better experience with the big name insurances compared to local ones. Some local insurers entice customers by offering some low premiums, but they tend to end up costing more if you ever need them. Not all small insurance providers do this, but many do lowball damages and can undercut your payments. So, rather than saving a few dollars, make sure that you go with the providers who have been in the business for long and have a good reputation in the market.

3. Look for deals and discounts

Auto insurance discounts may be hard to find, but they do exist. If you actively look for a discount, chances are, you might just find one. Some of the most common discounts that many auto insurance providers offer include the following.

· Good grade discounts for students

· Members of certain occupations such as medical professionals

· If you have anti-theft device in your car

· If you have taken a defensive driving course

· If you are a new driver who has taken a driver-training course

Now, these discounts may be modest, but they are surely available. Look for them and talk to your agent to find new opportunities to save using discounts and promotions.

4. Bundling your insurance- multi-policy holder discount

One of the best ways to save on auto insurance is by bundling your auto insurance with an eligible insurance policy. Many auto insurance companies offer auto insurance bundles with home, life or even renters insurance. Bundling can save you as much as 10% on your auto insurance premium.

5. Pay attention to your credit score

It may come as a surprise to many, but many states allow your auto insurance company to use your credit score to set premiums. Although credit scores are not the sole factors, they can have a significant contribution. Make a point of regularly checking your credit scores and report any errors on your credit report as soon as you spot one.

6. Teenage drivers

If you have teenagers on your auto insurance policy, your premiums can jump by as much as 50-100%. While insurance for your teenager is a must, you can save some money by making them take safe-driving courses before allowing them behind the wheel.

7. Make sure you are setting the right deductible

Setting higher deductibles can save you a significant amount of money on your premiums. Typically, if you increase your premium from $200 to $500, your premium can go down by as much as 30%, which is a significant saving. If you opt for the even higher deductible, say $1000, you can cut your premium in half! That said, remember that if something happens, you should be in a position to pay the deductible. If you are a good driver, opting for higher deductibles makes a lot of sense.